ČSOB Group net profit Q1 rose by 28 percent to CZK 2.7 billion
The net profit of the ČSOB Group in the first quarter rose by 28 percent year on year to 2.7 billion crowns. The volume of loans remained at the same level as a year ago, the volume of deposits increased by 12 percent. ČSOB, which is one of the largest domestic banks.
"ČSOB's results in the first quarter of 2021 confirm that Czechs can save and invest in such difficult times. The coronavirus crisis has slowed down the economy, but has significantly accelerated the development of digital services. Older clients are also moving to the online environment," the CEO commented. ČSOB John Hollows.
The ČSOB Group's net profit increased year-on-year in the first quarter due to favorable developments in the financial markets and the release of loan loss provisions, which together fully offset the year-on-year decline in net interest income and higher bank taxes.
The vast majority of ČSOB's clients returned to repayment after the moratorium ended. According to the bank, the majority of clients who needed help and asked for another postponement were approved individually. The share of so-called non-performing loans, ie problem loans, in the entire loan portfolio was 2.16 percent at the end of March.
Housing loans, namely mortgages and building savings loans, increased by five percent year on year. Mortgage sales were at a record high, more than doubling year-on-year in the first quarter.
The total volume of ČSOB loans reached CZK 795 billion. The volume of deposits increased to CZK 1.142 trillion. The volume of assets under management rose by one tenth to CZK 255 billion. The bank's operating revenues increased by four percent year-on-year to CZK 8.5 billion. Operating expenses increased by three percent to CZK 5.6 billion, but after adjusting for bank taxes, they fell by two percent.
The results for the first quarter have already been published by all competing large banks. Česká spořitelna's net profit fell by 14.8 percent year-on-year to 2.7 billion crowns, and that of Komerční banka by 24.9 percent to two billion crowns. Moneta Money Bank's consolidated net profit decreased by 18.2 percent to 598 million crowns.
The ČSOB Group includes ČSOB, Hypoteční banka, Českomoravská stavební spořitelna, ČSOB Penzijní společnost, ČSOB Leasing and ČSOB Factoring. ČSOB belongs to the international banking and insurance group KBC, which is active in Belgium and the countries of Central and Eastern Europe.
Source: ČSOB Group and CTK
